Start a Business in Europe 2022: Complete Guide

With the constant expansion of the European Union (now at 28 members) the situation is getting increasingly difficult for residents of countries that are not part of Europe to get a residence permit to begin an enterprise. 

This is partly because the EU stipulates that every citizen of its member states be treated the same as citizens of the country. For instance, the Greek businessperson who starts a new venture in France can avail of the same services, support as well as training, and loans in the same way as a French citizen. 

Therefore, there is less need for entrepreneurs and business people from outside of Europe to develop new ideas, services, and products. While the general business environment isn’t particularly welcoming to non-Europeans, every EU member nation has its own rules for the residency requirements for businesses.

 Below is a summary of the requirements for obtaining residency in Europe’s most sought-after destinations for expatriates.

Belgium

Foreigners who want to establish businesses or become self-employed or a freelancer requires a professional license that allows them to conduct their business in Belgium. It is possible to demonstrate your credentials and prove your success in your profession for the card to be issued. 

It is also necessary to prove that you have enough funds to finance the start-up of your business and to support yourself. In order to start a business or to pursue self-employment in Belgium, you must join the Banque-Carrefour des Enterprises (BCE) an official business registry for small businesses and self-employed. 

Denmark

Foreigners who are from outside of Europe can start a business or start a self-employment business in Denmark subject to the fact they meet certain requirements.

 There should be specific Danish commercial interests associated with the establishment of your company in Denmark as well as be able to prove that shows you have sufficient funds to run your company.

Being a self-employed individual, you’ll typically be granted a residence permit for a year, with the possibility of an extension. After two years of residency, it is possible to obtain the right to reside for an extended period of duration.

Poland

Poland is an official participant in the European Union and is located in the eastern part of Germany. Poland allows temporary residence for business owners who wish to set up a business within the country. 

It is essentially required for the investor to establish an activity for business and show that they earn at least 15,000 EUR in annual income to be eligible to be granted a temporary residence permit. 

Multiplying the 15,000 EUR income could result in the issuance of more residence permits temporary for investors. Investors can make investments in the real estate sector as a way to earn money. After three years of holding an interim permit, the person can apply for permanent residency in Poland. 

Polish passports are among the best in Europe. Polish passport is among the top passports worldwide, offering visa-free entry into the U.S. and freedom of movement within and around the European Union.

Read More: Establish your business in Poland

France

In order to facilitate the residency permit process for self-employed foreign professionals, The French government has established “Skills and Talents,” also known as the “Skills and Talents” permit ( Competences et Talents) is a brand new program that allows people who could contribute to their nation.

This “Skills and Talents Card” for self-employed individuals allows people who are not from Europe to start an enterprise or become expert independent professionals. If you’re in this category, you do not require to accept a job offer. All you require is to show exceptional professional abilities and have enough money to begin.

Ireland

If you want to start a business in Ireland you will require permission for business from the Department of Justice, Equality and Law Reform. To be eligible for this Entrepreneur program, you have to invest at least 75,000 euros & have the potential to hire 10 employees in those in the European Economic Area. 

In addition, you have to demonstrate your ability to run your business, & then submit an outline of your business plan accepted by an accounting company. 

Germany

Foreigners who plan to start an enterprise in Germany are able to obtain residence permits if there is a strong economic or regional need, provided that the business is expected to have an impact on the economy and the financing is guaranteed. 

Entrepreneurs who are self-employed from outside the country may gain access if their business is profitable and their income is secure and, if they’re more than 45 proof is presented that enough income is available for the necessities of “old age”.

Netherlands

Self-employed entrepreneurs and entrepreneurs are not required to have an employment permit in the Netherlands However, they must have the authorization to live in the country as self-employed individuals. 

To be capable of such a license, they must verify that your enterprise is an optimistic supporter of Dutch society, and/or the Dutch economy.

Rather of a work license, you should cite for a living permit & submit information about your firm plans, stuff along with start-up wealth & your motive to immerse in self-employment. If you are self-employed or a firm proprietor, you should enroll as a business in Netherlands.

Spain

Countries outside of the EU who wish to start a self-employed business or create an enterprise must obtain an identity card to be legal to reside as well as work legally in Spain. 

The residency application can be approved if you prove that you have the funds to begin and that your business can financially assist your needs. It is also necessary to prove that you meet the requirements required to manage your company.

Sweden

Foreigners who are not from the EU/EEA region who wish to start a business or business partnership in Sweden first require a residence permit in order legally reside in Sweden. Similar to other EU countries working permits are not needed in this situation. 

In order to get your residence permit approved, you must be the owner of at least 50% of the company, and you must prove that the company is profitable and it will be able to support your family and you. 

It is also necessary to prove that you have the necessary experience in the field, and have the necessary qualifications to manage your business in addition to having the capital to begin. 

United Kingdom

If you are planning to set up your business in the UK then you must have a minimum 200 000 pounds to invest in your company in addition to additional funds to provide for yourself and your family members until your company becomes profitable. 

In addition, you need to be a shareholder or have an equally-shared interest in your company (in the event of the case of a partnership), you need to be fully involved and you are not able to apply for public assistance or take the position of a worker while running your business. 

The UK also demands that two new permanent jobs that are full-time for UK citizens or residents of the UK be created by your company.

However, keep in mind that the factors that make London, Paris, and Frankfurt appealing to Europe’s top companies may not be the same for smaller companies or new start-ups.

 It is essential to assess the requirements of your business or beginning before you place your trust in any one of the studies or research studies mentioned within this piece.

If you’re still having questions regarding the starting of a business in Europe or any other topic, we are ODINT Consultancy here to assist you at each step of your way.